Japan's finance minister says yen intervention may be necessary when there are ‘excessive' moves

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Japanese Finance Minister Shunichi Suzuki on Friday backed currency interventions by his country’s policymakers if the yen moved in sharp directions.

Japanese Finance Minister Shunichi Suzuki declined to comment when asked whether current levels for the yen were appropriate.

He also wouldn't comment on whether his ministry had intervened in the currency market recently, amid intense speculation.Speaking to reporters at the Asian Development Bank's annual meeting in Tbilisi, Georgia, he said that it was desirable for exchange rates to move stably. "When there is an excessive movement, it may be necessary to smooth it out," he told CNBC's Dan Murphy, according to a translation.The finance minister declined to comment when asked whether current levels for the yen were appropriate. He also wouldn't comment on whether his ministry had intervened in the currency market recently, amid intense speculation., which is likely to have been caused by an intervention, according to some market analysts.

A weak yen against the greenback can hurt the economy by raising import costs and Suzuki's words on Friday are more confirmation that policymakers are keeping a close eye on the exchange rate.on Friday evening Asia time. In the last few decades, while other global central banks have tightened their policies, Japan had maintained its ultra-loose strategy.

 

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